(Adds strategist quotes and details throughout; updates prices)
* Canadian dollar dips 0.2 percent against the greenback
* Currency trades in a narrow range between 1.2808 and
1.2847
* Price of U.S. oil rises 1.6 percent
* Canada's 10-year yield hits a 4-1/2-year high at 2.548
percent
By Fergal Smith
TORONTO, Oct 3 (Reuters) - The Canadian dollar edged lower
against its broadly stronger U.S. counterpart on Wednesday,
paring some of the gains that followed a deal over the weekend
to revamp the NAFTA trade pact.
The decline for the loonie came as U.S. data showing that
private employers added 230,000 jobs in September pushed yields
on short-dated U.S. Treasury notes to their highest in a decade
and boosted the greenback against a basket of major currencies.
[
At 3:03 p.m. (1903 GMT), the Canadian dollar was
trading 0.2 percent lower at 1.2843 to the greenback, or 77.86
U.S. cents.
Still, the currency performed better than all the other G10
currencies with the exception of sterling and was confined to a
narrow range of 1.2808 to 1.2847.
On Monday, the loonie touched its strongest level in more
than four months at 1.2783 after a deal to salvage the
trilateral North American Free Trade Agreement (NAFTA) reduced
uncertainty for Canada's trade-dependent economy.
"The market has had NAFTA looming as a threat for 18 months
now and it has finally been resolved," said Eric Theoret, a
currency strategist at Scotiabank. "We had the initial pop on
Monday and I think everyone is struggling to come up with a
narrative for what's next."
One potential catalyst for the currency could be economic
data. Canada's jobs data for September and August trade data are
due on Friday and could help guide expectations for another Bank
of Canada interest rate hike as soon this month.
The price of oil, one of Canada's major exports, climbed to
its highest since November 2014 as the market focused on
upcoming U.S. sanctions on Iran while shrugging off the year's
largest weekly build in U.S. crude stockpiles and reports of
higher Saudi Arabian and Russian production.
U.S. crude oil futures settled 1.6 percent higher at
$76.41 a barrel.
Canada will not appeal a court ruling that overturned its
approval of an oil pipeline expansion project, opting instead
for more consultations with aboriginal groups unhappy about the
plan, a top official said.
Canadian government bond prices were lower across a steeper
yield curve in sympathy with U.S. Treasuries, with the 10-year
falling 63 Canadian cents to yield 2.540 percent.
The yield on the 10-year touched its highest intraday since
April 2014 at 2.548 percent.
(Reporting by Fergal Smith; editing by Jonathan Oatis; Editing
by Sandra Maler)